Tata Motors to shut down Jamshedpur unit for five days

Ranchi, Nov 23 (IANS) Tata motors will shut down its Jamshedpur unit for five days for the second time this month from Nov 25, spokesperson for the company said Sunday. This shutdown is attributed to slump in sales orders. “The Tata Motors Jamshedpur unit will be closed down for five days from Nov 25-29,” spokesperson of Tata Motors P.J. Singh told IANS over telephone from Jamshedpur.

This is the second time in November that Tata Motors has decided to shutdown the unit. Earlier Tata Motors had officially shutdown for three days from Nov 6-8.

Unofficially, it was a five day shutdown as Nov 5 and Nov 9 were company holidays.

The production target was reduced by 15 percent in October. Tata Motors had in a phased manner asked the 3,000 temporary employees not to report for work.

In November Tata Motors authorities have decided to shutdown the company for the second time due to slump in work orders, officials of the company said.

More than 70 percent small scale industries depending on the Tata Motors have been affected by the slowdown.

“We are with the company. We have suggested to the company management that they adopt measures to cut costs to meet the challenge of global meltdown,” said Bachcha Singh, spokesperson of Telco Workers Union.

According to company officials, 125,000 heavy vehicles were produced by Tata motors during the 2007-2008 financial year but due to slump in the economy it has produced only around 50,000 heavy vehicles in the current financial year.

The target of current financial year is around 150,000. Company officials say that if a similar situation persists then they might be only able to manufacture 100,000 vehicles in the current financial year.